One veteran macro trader summed up the markets perfectly “Shit’s starting to break” – noting that ‘real’ macro data decoupled from stocks at the start of the year, VIX decoupled from stocks three weeks ago, EM broke over a week ago, Copper snapped last week, and now High Yield credit is breaking – stocks are always the last to catch on…

Russell 2000 down 4 days in a row – longest losing streak in 3 months; S&P’s 4-day decline is worst since right before the election; Trannies down 3% in the last 4 days…

Bloomberg’s Andrew Cinko tallied up the drop from peak to trough for the five multi-day retreats in Nasdaq since election day:

March 1 peak: -1.4%

February 21 peak: -1.2%

January 26 peak: -1.7%

December 27 peak: -2.6%

November 29 peak: -3.1%

Small Caps are the worst performers of the last 4 days – biggest drop since before the election – testing key technical levels

Another day, another desperate attempt to crush VIX and drive momentum back into stocks… (VIX LoD 11.04)

Bonds and Stocks both sold off together again – 3rd day in a row – (as Risk-Parity funds contonued their biggest slide of the year)